HUSTLE Act Empowers College Athletes to Secure Financial Future

BOOK AWAY GAME TRAVEL NOW!
Flights | Hotels | Vacation Rentals | Rental Cars | Experiences

U.S. Representatives Greg Steube (R-Fla.) and Brendan Boyle (D-Pa.) have introduced the Helping Undergraduate Students Thrive with Long-Term Earnings (HUSTLE) Act. It’s a bipartisan bill that would let college athletes set up tax-advantaged investment accounts, helping them grow their name, image, and likeness (NIL) earnings without federal income tax liability.

The goal? Give student-athletes a real shot at long-term financial stability. Senators Marsha Blackburn (R-Tenn.) and Maria Cantwell (D-Wash.), the NCAA, and several university athletic departments have thrown their support behind it.

Table of Contents

The Importance of the HUSTLE Act

This bill lands at a pretty wild time for college athletics. Since the Supreme Court’s 2021 decision that affirmed student-athletes’ rights to profit from their NIL, college sports have changed—fast.

Last academic year, NIL deals pulled in over $1.2 billion. Some folks are predicting that number could top $2.5 billion by 2025-2026.

But here’s the thing: a lot of student-athletes are still figuring out how to handle all this new money.

Addressing Financial Literacy

According to a 2022 NCAA survey, 49% of student-athletes said they needed more education on tax and financial literacy. Only 9% had ever met with a financial counselor, which is honestly a bit concerning.

The HUSTLE Act would require trustees to give student-athletes educational materials on investing, financial planning, and long-term security. It’s about time, right?

Key Features of the HUSTLE Act

The HUSTLE Act packs in several features to help student-athletes manage their NIL earnings. Here’s a quick rundown:

Tax-Advantaged NIL Investment Accounts: Student-athletes could contribute qualifying NIL earnings into special accounts, with contributions up to the annual gift-tax exclusion limit staying off their taxable income.
Long-Term Savings and Investing: Funds can be distributed as long-term capital gains after graduation or rolled into an IRA.
Flexible Withdrawal Options: Need to withdraw before graduation? No penalty, as long as it’s for career transition, education, or medical expenses.
IRA Rollovers: Up to $35,000 in unused NIL account funds can roll into an IRA or other retirement account after the athlete’s been out of college sports for at least a year.
Educational Requirements: Trustees must provide materials on investing, financial planning, and building long-term security.

Support from Key Stakeholders

The HUSTLE Act’s gotten a thumbs-up from a bunch of folks in the college athletics world. Tim Buckley, Senior VP of External Affairs at the NCAA, said it’s important to give athletes more resources for long-term financial success.

SEC Commissioner Greg Sankey also praised the bill for its focus on financial education and responsible management of earnings. It’s not every day you see this much agreement.

University Endorsements

University athletic departments are chiming in, too. Michael Alford, Florida State’s Vice President and Director of Athletics, stressed the need for financial literacy and long-term planning for student-athletes.

The University of Florida’s athletic department echoed that, calling for transparency, agent accountability, and a bigger push for saving and investing for the future.

Conclusion

The HUSTLE Act is a big deal for college athletes dealing with financial hurdles in the NIL era. It’s not just another bill—it’s trying to tackle the real money struggles that student-athletes face.

By setting up tax-advantaged investment accounts, the bill gives athletes a shot at saving for the future. There’s also a requirement for financial education, which honestly seems overdue.

There’s bipartisan support and some pretty influential backers behind this. If things go as planned, the HUSTLE Act could shake up the college sports world and maybe even help athletes succeed long after their playing days are over.

If you’re curious, you can check out the full text of the bill and more about the HUSTLE Act here.

Joe Hughes is the founder of CollegeNetWorth.com, a comprehensive resource on college athletes' earnings potential in the NIL era. Combining his passion for sports with expertise in collegiate athletics, Joe provides valuable insights for athletes, fans, and institutions navigating this new landscape.

Additional Reading: